Aug 20, 2025
Federal investigators in Massachusetts have charged 13 people, nine of whom are now in custody, in connection with a sprawling "grandparent scam” that took millions of dollars from elderly victims.
Authorities say the operation impacted around 400 victims. The average victim was aged 84 years old. Total losses from the scam exceeded $5 million.
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“Their goal was to trick our grandparents … into handing over their life savings under false pretenses. And they succeeded in stealing millions,” U.S. Attorney for Massachusetts Leah Foley told CBS News.
How the scam worked, and its devastating toll
CBS News reports that the scam operated out of call centers in the Dominican Republic, led by alleged ringleader Oscar Manuel Castanos Garcia.
Victims would receive a call from someone posing as their grandchild, who opened with an urgent emotional plea, such as, “I’ve been in an accident,” or, “I need bail money.” Once the victim was hooked, a so-called “closer” pretending to be a lawyer took over, pressuring them to hand over thousands in cash.
Once the victim agreed, scammers then dispatched unwitting Uber drivers to collect the money or even drive the elder to a bank to withdraw it. The cash would then be transferred to another person who allegedly laundered it to the suspects. Uber’s Global Security team eventually flagged the suspicious activity to the FBI, helping investigators piece the operation together.
Officials said many victims handed over tens of thousands of dollars — sometimes $10,000 or more in a single payout. For seniors living on fixed incomes, that sum can represent years of careful savings or the only liquid cash they have available.
The Justice Department noted that many older Americans are too ashamed to report being duped, meaning the true financial toll may be far higher than the $5 million documented so far. Prosecutors warn that most of these victims will never see their money again. Currently, four suspects remain at large.
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Lessons learned: Red flags & ongoing risk
Elder fraud is a rapidly growing problem. The FBI reported a 33% jump in elder scams in 2024, with annual losses topping $16.6 billion nationwide.
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Although nine suspects in this grandparent scam are in custody, four remain at large. Similar operations could still be active, meaning older Americans remain at risk of losing their savings to schemes just like this.
With that in mind, here are some common red flags to watch for:
- Emotional hooks: A call from a supposed grandchild in an “accident” or needing “bail money.”
- Authority impersonation: Follow-up calls from fake lawyers, police or bail bondsmen demanding cash.
- Pressure tactics: Urgent instructions not to tell anyone and to act immediately.
- Unusual payment requests: Demands for cash, gift cards, wire transfers, or crypto.
- Third-party couriers: Strangers, like rideshare drivers or couriers, sent to pick up money.
Protection strategies: What seniors and families can do
Recognizing the warning signs is only the first step. Experts say the best defense is to prepare in advance for how to respond if a suspicious call ever comes through. That means seniors and their families should talk openly about scams and create a plan together.
Here are key strategies to help safeguard against grandparent scams and other forms of elder fraud:
- Pause and verify. Hang up, then call a trusted family member before sending money. If you make the call yourself, you can be sure you’re really talking to your grandchild.
- Verify with authorities. If someone claims to be a lawyer, police officer or bail bondsman, independently verify with the actual institution before sending money.
- Recognize pressure tactics. Any call demanding immediate payment is a red flag.
- Report suspicious activity. Contact local police and file a report with the FBI at IC3.gov.
Scams like this are designed to exploit the trust between grandparents and their grandchildren. While this particular ring has been largely dismantled, others are still operating, and older Americans remain a prime target. Staying alert, talking with loved ones and slowing down before acting on an emotional call can make the difference between protecting a lifetime of savings and losing it in an instant.
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With a writing and editing career spanning over 13 years, Emma creates and refines content across a broad spectrum of industries, including personal finance, lifestyle, travel, health & wellness, real estate, beauty & fitness and B2B/SaaS/tech. Her versatility comes through contributions to high-profile clients like Moneywise, Healthline, Narcity and Bob Vila, producing content that informs and engages, along with helping book authors tell their stories.
